Rice distribution system 'should be streamlined'<\/p>\n
JAKARTA (JP): A city councilor has underlined the importance
\nof cutting the lengthy rice distribution chain to help reduce the
\nprice of the essential commodity.<\/p>\n
Djafar Badjeber of Commission B for economic affairs said on
\nMonday that market cooperatives should buy rice from Jakarta
\nbranches of the National Logistics Board (Dolog) or directly from
\nproducers themselves to streamline the distribution chain.<\/p>\n
\"If cooperatives can get rice directly from Dolog or the
\nfarmers and then distribute it to vendors, the price from the
\nfarm gate to the market will only rise by a maximum of 12
\npercent,\" he said.<\/p>\n
Under the existing system, prices rise by an average of 20
\npercent as the rice is passed from suppliers to distributors to
\nagents, before it reaches the markets then finally the vendors,
\nhe said.<\/p>\n
Djafar said the more stages in the distribution chain the
\nhigher market prices would be.<\/p>\n
\"It's because each link in the chain marks up the price
\nslightly so that they can make a profit from their involvement in
\nthe trade,\" he said.<\/p>\n
\"Moreover, a number of unscrupulous suppliers, distributors
\nand agents are known to on occasion deliberately hoard rice
\nstocks to force prices up and increase their own profits,\" he
\nadded.<\/p>\n
Djafar said the main problem associated with encouraging
\ncooperatives to cut the number of links in the chain was that
\nthey had insufficient funds to buy rice in large quantities.<\/p>\n
He reiterated that the administration should find a way to
\nhelp cooperatives solve their financial problems in conjunction
\nwith the banking industry.<\/p>\n
Djojo Sutardo of the city regional economic bureau confirmed
\non Monday that the supply of rice in Jakarta from producers in
\nWest Java, Central Java and East Java had returned to normal
\nafter being disturbed by the recent riots.<\/p>\n
\"There's no shortage of rice in the city because supply can
\nstill meet demand,\" he said.<\/p>\n
The demand for rice in Jakarta alone was estimated at an
\naverage of 2,025 tons a day, while the daily supply of rice at
\nCipinang central market alone was at least 2,000 tons, he said.<\/p>\n
\"The only problem is that people do not have enough money to
\nbuy the rice,\" he said, adding that rice prices rose by an
\naverage of 8 percent last week. (ind\/cst)<\/p>",
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